Bitcoin’s Price Rises Amid Regulatory Hopes

Bitcoin’s price rose on Wednesday, nearing a three-month high due to hopes for friendlier regulations from the upcoming 2024 U.S. elections and increased capital inflows.

The largest cryptocurrency seems to have broken out of the $50,000 to $65,000 trading range prevalent throughout the year, sitting around $7,000 shy of new record highs.

Earlier this week, sentiment was bolstered by the defunct exchange Mt. Gox extending its timeline for returning stolen tokens to creditors.

As of 08:53 ET (12:53 GMT), Bitcoin climbed 3% to $67,845.0.

Bitcoin Buoyed by U.S. Regulatory Hopes

Crypto sentiment improved this week after Democratic presidential candidate Kamala Harris committed to establishing a concrete regulatory framework for cryptocurrencies.

Harris' stance reflects a crypto-friendly approach shared by major candidates, with Republican nominee Donald Trump also supporting crypto. Trump’s World Liberty Financial project went live this week, reportedly raising at least $220 million in token sales.

Recent polls indicate Trump has regained some ground against Harris, fueling speculation that a Trump presidency would favor crypto interests. However, polls suggest a close presidential race with approximately three weeks until the election.

Crypto Investment Products See Weekly Inflows

According to digital asset manager CoinShares, cryptocurrency products experienced inflows of $407 million in the week ending October 13, with most directed towards Bitcoin. This uptick follows mild outflows in the previous week.

The inflows are attributed to growing speculation regarding a potential Trump victory in the upcoming elections, helping the crypto markets adapt to changes in expectations for U.S. interest rates.

Crypto Price Today: Mixed Performance

Broader crypto prices were mixed, with most major altcoins underperforming Bitcoin. The second-largest cryptocurrency, Ether, increased by 1% to $2,633.23, while XRP and SOL rose by 0.6% and 1.4%, respectively. ADA saw a decline of 0.8%, and MATIC remained stable.

Among meme tokens, DOGE experienced a surge of over 10%.

Italy Plans to Increase Capital Gains Tax on Crypto

Italy is set to raise the capital gains tax on Bitcoin and other cryptocurrencies from 26% to 42%, as reported by local newspaper Il Sole 24 Ore, referencing Vice Economy Minister Maurizio Leo.

Leo mentioned that the higher tax rate aims to generate funds for supporting families, young people, and businesses, shifting focus from lower rates that previously applied to crypto treated as foreign currency.

The proposed tax adjustment coincides with reports that UK Chancellor Rachel Reeves is considering increasing capital gains taxes, including on cryptocurrencies, from 20% to 39%.

Additionally, Leo commented on the government's intention to limit cash usage to curb tax evasion.

Ambar Warrick contributed to this report.